Baker Hughes Earnings Conference Call Q3 2014 2014 Baker Hughes Incorporated. All Rights Reserved. 16 October 2014 8:30 am EDT 2014 BAKE R HUGH E S INCOR P O R A T E D. ALL RIGHT S RESE R V E D . T ERMS AND CON DIT I O N S OF…
Q3 2014 Earnings Conference Call Introduction Trey Clark Vice President, Investor Relations Financial Performance Peter Ragauss Senior Vice President and Chief Financial Officer Business Outlook Martin Craighead Chairman and…
Q3 2014 Overview Shifting market dynamics: Margins impacted by geopolitical events in the Eastern Hemisphere and deepwater activity delays in the Gulf of Mexico Latin America delivers profitable growth and secures contract wins…
Q3 2014 Overview Actions to mitigate industry challenges: North Africa geomarket restructured Demobilization on Iraq contract completed Alternative business model employed in Venezuela 2014 Baker Hughes Incorporated. All Rights…
Q3 2014 Overview North America margins set to expand: Gulf of Mexico among the worlds most profitable operations Tremendous onshore growth in pressure pumping Strong demand for new technologies Short term outlook remains positive…
Financial Performance Peter Ragauss Senior Vice President and Chief Financial Officer 2014 Baker Hughes Incorporated. All Rights Reserved. 7
Q3 2014 Financial Highlights Adjusted Net Income1 447 million 1.02 per share Attributable to Baker Hughes 2 Impairment of Technology Investment (14) million (0.03) per share 3 Business Restructure in North Africa (58) million…
North America Q3 Results Up 11% Revenue 3.16 billion sequentially 1 Up 40 million Operating PBT 380 million sequentially 1 Unchanged Operating PBT Margin 12.0% sequentially Strong revenue growth driven by U.S. onshore…
International Q3 Results Unchanged Revenue 2.76 billion sequentially Down 29 million 2 1 375 million 3 Operating PBT sequentially Down 110 bps 2 1 Operating PBT Margin 13.6% 3 sequentially Europe/Africa/Russia Caspian…
Industrial Services Q3 Results Unchanged Revenue 333 million sequentially 1 Up 1 million Operating PBT 35 million sequentially 1 Up 30 bps Operating PBT Margin 10.5% sequentially Acquisition of pipeline and specialty…
Balance Sheet Free Cash Flow 725 million Cash 1.2 billion Total Debt 4.4 billion Total Debt-to-Capital Ratio 19% Capital Expenditures for Q3 2014 425 million 2014 Baker Hughes Incorporated. All Rights Reserved. Shares…
Q4 14 Guidance and Assumptions U.S. onshore well count and Canadian rig count to rise International activity to increase from year-end product sales Industrial to benefit from newly acquired business Corporate Costs 65-70…
Business Outlook Martin Craighead Chairman and Chief Executive Officer 2014 Baker Hughes Incorporated. All Rights Reserved. 15
Business Outlook Market dynamics are evolving: Lower commodity prices result in reduced cash flow for our customers Divergence between North America and international markets Frequent geopolitical issues adding increased complexity…
Business Outlook Pressure Pumping is hitting its metrics: Fleets are essentially fully utilized Stage counts increasing with 70% of fleets on 24 hour operations Revenue per stage increasing from improved contract terms 2014 Baker…
Business Outlook Strategic investments are well-timed: Deepwater market benefits from lengthy planning cycles National Oil Companies continue pursuing aggressive production targets 2014 Baker Hughes Incorporated. All Rights…
2014 Baker Hughes Incorporated. All Rights Reserved. 19
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